If church leaders taught the Word & equipped believers, there would be little need for DE. Where did believers go in the First Century for training in theology? They were taught by the elders in their assemblies. Our church leaders are ill-equipped to actually train laypersons to their fullest spiritual potentials in Biblical understanding. Is this not what the Word means when church leaders are commanded to feed the flock?
While this seems to be ideal, it has never been put to practice. The Disciples had to leave their careers to go the "Jesus Theological Seminary", Timothy left his family and followed under Paul, Paul did his "undergraduate" with Gamiel, then left to the wilderness for three years. Throughout Church history people have not gone through the church for their preparations for ministry. Instead, churches started schools, such as Harvard, Princeton, etc.
However, the church needs to be involved. When I was in seminary, I was told on many occasions, "Do not go into the church and teach these things." I somewhat understand the reasoning behind that statement, but do not like it. The church needs to help with the practical aspects of ministry. While I was in seminary, I interned. This included pastoral duties such as running committee meetings, hospital visits, preaching, tough decision making, etc etc etc. Preaching is the fun part of ministry, but there is a lot more to it than that, Seminary and church should work hand in hand.
Now, I am a product of both a residential program and a distance program. I do not like it when someone says, I cant just move my family to go to school. Again, referencing my earlier example, the disciples left EVERYTHING to follow Jesus. However, distance education is a great way to get a education. It is challenging and requires a lot of discipline. However, residential work requires discipline as well. Residential work requires scheduling times to sit in the class, homework time, just as distance ed does. Rigor is good in both settings, if the school is rightly accredited. There are exceptions to this, but in general if the school is not accredited it will not be a rigorous as an accredited degree program.
Therefore, regarding the main question of the thread. I know you mentioned that you know about Liberty, but I would look at it again. Cost wise it is hard to beat, and the school has pretty much made the way in regard to accredited distance ed. I think there are more challenging schools available, but Liberty is hard to beat on a cost level.